Apprentice -v- Lord Sugar; the Empire Strikes back

In a recent blog I highlighted the constructive dismissal claim being brought by former Apprentice winner, Stella English. Miss English subsequently lost the case.

In particular, I highlighted the comments of the Employment Tribunal Judge in the judgment that “the case should never have been brought in the first place”. I thought that might spark Lord Sugar’s company into making an application for costs, a rare thing in the Employment Tribunal.

Sure enough, it has today been reported (here) that Miss English is being pursued for up to £35,000 in costs, according to sources.

As a reminder, the general rule in Employment Tribunal proceedings is that a costs order will only be made where a party has acted vexatiously, abusively, disruptively, or otherwise unreasonably, or that the bringing or conducting of proceedings has been misconceived. An application for a costs order must be made at the hearing or within 28 days of Tribunal’s judgment. The Tribunal can order up to £20,000 by way of a costs order, or refer the matter to the County Court if the amount claimed is more.

It is a timely reminder that tribunal claims can be expensive for employees as well as employers.

It seems the days of the employee bringing a tribunal claim just to achieve a commercial settlement may soon be over. Not only with the risk of costs orders which, in our experience are becoming more frequent but also with the introduction of the new tribunal fees which come in to effect on 29 July 2013. More about those later.

You can read more of my firm's blogs here: http://www.tozers.co.uk/employment/